MARKET REPORT
Q4 2015
NATIONAL ASKING CAP RATES
MARKET OVERVIEW
Cap rates in the fourth quarter of 2015 for the single tenant net
lease retail sector remained unchanged from the previous quarter
at their historic low rate of 6.25%. Cap rates for the office and
industrial sector reached new historic lows of 7.00% and 7.44%.
Over the course of 2015, cap rates for retail, office, and industrial
properties declined by 15, 35 and 26 basis points respectively as
investor interest has increased due to the safe and stable returns
this asset class generates.
Q3 2015
(Previous)
Q4 2015
(Current)
Basis Point
Change
Retail
6.25%
6.25%
Office
7.25%
7.00%
-25
Industrial
7.59%
7.44%
-15
Sector
NUMBER OF PROPERTIES
ON THE MARKET
Sector
Q3 2015
(Previous)
Q4 2015
(Current)
Percentage
Change
Retail
3,497
3,061
-12.5%
Office
360
322
-10.6%
Industrial
323
335
+3.7%
The fourth quarter represented the first time in 2015 that the cap
rate spread between asking and closed pricing increased for retail
properties. Owners of net lease product have attempted to take
advantage of the low cap rate environment over the course of
2015. The spread for retail and office properties expanded by 5 and
6 basis points for retail and office properties respectively illustrating
the pushback from buyers on the aggressive pricing sellers are
seeking.
Q3 2015
(Previous)
Q4 2015
(Current)
Basis Point
Change
Retail
18
23
+5
Office
33
39
+6
Industrial
50
40
-10
Sector
www.bouldergroup.com
Sector
Tenant
City
Price
Per SF
Cap
Rate
Lease Term
Remaining
Nov-15
Office
Wells Fargo
Raleigh
NC
$42,300,000
$93
6.50%
Oct-15
Retail
Walgreens
Las Vegas
NV
$37,000,000
$2,310
5.27%
14
Nov-15
Industrial
CVS
Orlando
FL
$35,500,000
$50
5.95%
11
Dec-15
Industrial
Yokohama Tire
Groveport
OH
$35,000,000
$46
6.25%
15
Oct-15
Retail
Kohl's
Lakewood
CO
$18,705,000
$212
5.95%
10
Nov-15
Industrial
Technicolor
Memphis
TN
$16,500,000
$26
8.00%
Oct-15
Industrial
FedEx
Tallahassee
FL
$14,928,000
$120
6.35%
10
Nov-15
Retail
Anderson
SC
$13,900,000
$336
5.15%
20
Oct-15
Retail
CVS
Plano
TX
$10,202,589
$776
4.82%
21
Dec-15
Retail
Walgreens
Whitehouse Station
NJ
$9,720,000
$790
4.99%
25
Oct-15
Retail
BB&T Bank
Haymarket
VA
$7,500,000
$1,704
4.75%
14
Oct-15
Retail
Rite Aid
Allentown
PA
$6,765,000
$457
7.00%
Oct-15
Retail
Walgreens
Dallas
TX
$5,753,868
$380
6.80%
Nov-15
Retail
Rite Aid
Moses Lake
WA
$5,650,000
$337
6.46%
State
Price
8.15%
7.65%
7.15%
6.65%
6.15%
Q1 2007
Q1 2008
Q1 2009
Q1 2010
Q1 2011
Q1 2012
Q1 2013
Retail
www.bouldergroup.com
Q1 2014
Oce
Q1 2015
Industrial
Tenant
20112015
20052010
20002005
Pre
2000
7-Eleven
4.60%
5.15%
6.15%
6.33%
6.05%
6.36%
7.00%
7.30%
AutoZone
5.15%
5.90%
6.00%
N/A
4.00%
4.50%
4.85%
5.15%
Chase (GL)
4.10%
4.30%
4.45%
N/A
CVS
5.05%
5.30%
5.95%
7.50%
DaVita
6.00%
6.80%
7.00%
8.00%
Dollar General
6.50%
7.80%
8.25%
8.94%
Family Dollar
6.30%
7.84%
8.50%
8.75%
FedEx
5.75%
6.33%
7.00%
9.00%
Fresenius
6.00%
6.70%
7.85%
8.50%
GSA
6.50%
7.02%
8.54%
7.02%
McDonald's (GL)
3.90%
4.15%
4.75%
4.90%
5.60%
5.95%
6.10%
7.00%
PNC (GL)
4.00%
4.63%
N/A
N/A
Rite Aid
5.83%
6.40%
6.55%
8.25%
Walgreens
5.18%
5.60%
6.00%
6.97%
(29%)
(23%)
(35%)
(13%)
(0%)
CONTRIBUTORS
Randy Blankstein | President
randy@bouldergroup.com
jimmy@bouldergroup.com
zach@bouldergroup.com
scott@bouldergroup.com
2016. The Boulder Group. Information herein has been obtained from databases owned and maintained by The Boulder Group as well as third party sources. We have not verified the information
and we make no guarantee, warranty or representation about it. This information is provided for general illustrative purposes and not for any specific recommendation or purpose nor under any
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